LG Saenggeon Q1 Operating Profit 145.9 Billion KRW... Down 16.9% YoY

Sales of 1.6837 trillion KRW... 2.4% increase over the same period
"Beauty, household goods, and beverages boost sales growth"
30% share of overseas sales, 500.2 billion KRW... 1.7% decrease

LG Household & Health Care announced on the 27th that its total company sales in the first quarter of this year reached 1.6837 trillion KRW, a 2.4% increase compared to the same period last year. Operating profit recorded 145.9 billion KRW, a 16.9% decrease.

LG Gwanghwamun Building, the headquarters of LG Household & Health Care.
[Photo by LG Household & Health Care]

Sales growth was driven by increased revenue in beauty, household goods, and refreshment (beverages) sectors.

Specifically, the beauty business posted first-quarter sales of 701.5 billion KRW, up 0.3% year-on-year, while operating profit decreased by 11.3% to 61.2 billion KRW.

Sales remained at the same level as the previous year due to a delayed recovery in overall Chinese consumption. Duty-free sales grew in double digits due to a base effect, but sales in China declined by double digits. Operating profit decreased due to increased costs and fixed expenses.

During the same period, household goods sales increased by 1.9% to 563 billion KRW, while operating profit fell 40.7% to 32.7 billion KRW.

Sales increased due to strong performance in daily beauty products, and sales of oral care products (‘Perio’, ‘Yusimol’) and ‘Physiogel’ also rose. However, operating profit declined due to cost burdens from inflation and increased fixed expenses.

Refreshment business sales rose 6.7% to 419.2 billion KRW, and operating profit increased 1.3% to 52 billion KRW.

Sales growth was driven by the continued success of ‘Coca-Cola Zero’ and ‘Monster Energy’, and beverage sales performed well in offline channels due to increased outdoor activities. Operating profit saw a slight increase despite rising costs such as raw materials.

Overseas sales, which account for 30% of total company sales, amounted to 500.2 billion KRW, a 1.7% decrease compared to the same period.

This content was produced with the assistance of AI translation services.